Many of us believe that credit default swaps are to blame for the current economic collapse. I have also read that credit derivatives are another major point source for the global economic collapse. I didn’t know whether such assertions were correct, because I had no idea what credit default swaps are or what they do. Preliminary research indicated that I would never understand these seemingly mysterious securitized instruments without the help of an industry insider. Thankfully, I found some very helpful individuals who were willing to talk.
What are credit derivatives? What are credit default swaps? Why were they created, how do they work, and whom do they benefit? Is there anything positive about credit default swaps, or are they really just instruments of mass destruction? B & B Structured Finance Managing Partner Terry Duhon and Partner Betsy Mettler join us with Web of Debt author Ellen Brown to shed much-needed light on this complex topic.